Insurers warn Trump's short-term health plans fall short

Friday, July 27, 2018, Vol. 42, No. 30

WASHINGTON (AP) — A major insurer group is warning that the Trump administration's short-term health insurance plans could be harmful for consumers.

The group is the Blue Cross Blue Shield Association, whose member plans are a mainstay of Affordable Care Act coverage.

A senior vice president, Justine Handelman said health insurance should be available and affordable for everyone, "regardless of their health status."

She said consumers could be harmed by slimmed-down policies that don't provide comprehensive coverage. That could make comprehensive coverage more expensive and leave some consumers "unaware of the risks of these policies," she added.

Earlier Wednesday, the Trump administration said it's clearing the way for health insurers to sell short-term plans as a low-cost alternative to pricey Obama-law policies for people struggling with high premiums. But the policies for individuals have no guarantees of coverage for existing medical conditions and come with limited benefits.

Federal health officials say the plans can last for up to 12 months and may be renewed for up to 36 months.

Senate Minority Leader Chuck Schumer of New York says Democrats will "do everything in our power" to stop the Trump administration's expansion of short-term health insurance plans.

It's unclear how that might happen, since versions of such plans have long been available — including during the Obama administration.

"These new short-term plans are nothing short of junk insurance and are so dangerous for Americans that it's no wonder not a single group representing patients, physicians, nurses or hospitals has voiced support," Schumer said in a statement.

Proponents of short-term plans say they provide a fallback option for healthy people who make too much money to get subsidized coverage under Obama's health law.